EU approves €5 Mln aid for redundant Spanish workers

 

1400 Spanish and Italian workers should get EU support to try and get back on to the labour market after losing their jobs. Parliament's budgets committee approved €5 million from the European Globalisation Adjustment Fund on Tuesday. The decision still needs to be endorsed by Parliament as a whole and the Council of Ministers.

In Spain, car manufacturer Grupo Santana, which is situated in the crisis-hit Jaen region, had to lay off 330 workers. The EGF support of €1,964,407 is intended to reintegrate 285 of the redundant workers into employment. An equivalent amount will be allocated by the Spanish authorities themselves.

Grupo Santana is not the only EU car manufacturer in distress. Many EU manufacturers have seen their market share decline over recent years and the automotive sector has been the subject of numerous EGF applications.

The Spanish package was approved with 21 votes in favour and 1 against.

Background :

The European Globalisation Adjustment Fund contributes to packages of tailor-made services to help redundant workers find new jobs. The annual ceiling of the fund is €150 million.

Redundant workers are offered measures such as support for business start-ups, job-search assistance, occupational guidance and various kinds of training. In most cases, national authorities have already started the measures and will get their costs reimbursed from the EU when their applications are finally approved.

Parliament is expected to cast its vote in the plenary session on 16 April. The Council will also need to approve the package.